L.S. 406.11 Regolamenti dwar Rifużjoni ta' Taxxa fuq il-Valur Miżjud lill-Persuni Taxxabbli mhux stabbiliti fit-Territorju tal-Komunità

(1)The title of these regulations is the Refund of Value Added Tax to Taxable Persons not established in the Territory of the Community Regulations. Citation and commencement.

(2)These regulations shall come into force on 1st May, 2004, and shall apply solely to input tax that becomes chargeable on or after that date. 2. For the purposes of these regulations, unless the context otherwise requires: "the Act" means the Value Added Tax Act; "a taxable person not established within the territory of the Community" means a taxable person who during the time of supply in question, does not have his business nor a fixed establishment from which business transactions are effected, or, if no such business or fixed establishment exists, his permanent address or usual place of residence in the territory of the Community, and who, during the same period, has supplied no goods or services deemed to have been supplied in Malta, with the exception of: (a) transport services and services ancillary thereto exempted pursuant, insofar as these form part of the taxable value, in accordance with item 12 of the Seventh Schedule to the Act, and items 1, 2, 4

(2), 4

(3), 5, 6, 7 and 8

(1)of Part One of the Fifth Schedule to the Act; (b) services provided in cases where tax is paid solely by the persons to whom they are supplied, pursuant to items 7, 9, 10, 11

(1)and 12 of the Third Schedule to the Act, where the services are supplied and carried out by a taxable person resident abroad. "territory of the Community" means the territories defined in the Sixteenth Schedule to the Act; "a taxable person not established in Malta" means a taxable person who during the time of supply in question, does not have his place of his economic activity nor a fixed establishment from which business transactions are effected, or, if no such place of his economic activity or fixed establishment exists, his domicile or his normal place of residence in Malta. Interpretation. Cap. 406. 1 2 [ S.L.406.11 Refunds. Amended by: L.N. 125 of 2005. S.L. 406.10 REFUND OF VALUE ADDED TAX TO TAXABLE PERSONS NOT ESTABLISHED IN THE TERRITORY OF THE COMMUNITY 3.

(1)Without prejudice to regulations 4 and 5, the Commissioner of VAT shall refund to any taxable person not established within the territory of the Community, subject to the conditions set out below, any value added tax charged in respect of services rendered or movable property supplied to him in Malta by other taxable persons or charged in respect of the importation of goods into Malta, in so far as such goods and services are used for the purposes of the provision of services referred to in regulation 2(a) and (b).

(2)Without prejudice to regulations 4 and 5, the Commissioner of VAT shall refund to any taxable person not established in Malta but in the territory of the Community, subject to the conditions set out below, any value added tax charged in respect of services rendered or movable property supplied to him in Malta by other taxable persons or charged in respect of the importation of goods into Malta, in so far as such goods and services are used for the purposes of the supplies referred to in article 22

(4)(c) of the Act or for the purposes of other supplies than those mentioned in the Refund of Value Added Tax to Taxable Persons not established in Malta Regulations, which taxable persons are established in the territory of the Community and who realise only in Malta operations allowed by these regulations, for which they should not register in Malta under article 10 of the Act.

(3)Refunds to taxable persons not established in the territory of the Community shall be made with the exception of refunds of input VAT related to electronically supplied services provided by taxable persons registered in the territory of the Community under the special scheme referred to in Part Seven of the Fourteenth Schedule to the Act.

(4)The Commissioner may, by means of a notice in writing, require the appointment of a tax representative, with the exception of taxable persons established in the territory of the Community and taxable persons providing electronically supplied services referred to in subregulation

(3). Manner of application. Amended by: L.N. 125 of 2005; L.N. 426 of 2007; L.N. 105 of 2008. 4.

(1)The refunds referred to in regulation 3

(1)shall be granted upon application by the taxable person on the form pr escribed in the First Schedule. Su ch application shall be com pleted either in the Maltese language or in the English language and shall be submitted to the Commissioner of VAT, Centrepoint Building, Ta’ Paris Road, Birkirkara, CMR 02, Malta, within six months from the end of the calendar year in which the tax became chargeable. If the application relates to a period of less than one calendar year but not less than three months, the amount for which the application is made may not be less than one hundred and eighty-six euro (€186); if the application relates to a period of one calendar year or the remainder of a calendar year, the amount may not be less than twenty-three euro (€23). The Commissioner may round up or down, by up to 10 per cent, the figures resulting from this conversion into national currency. REFUND OF VALUE ADDED TAX TO TAXABLE PERSONS NOT ESTABLISHED IN THE TERRITORY OF THE COMMUNITY [ S.L.406.11

(2)The application shall contain the following information and, or documentation: (

1. a)an official certificate drawn up on the form prescribed in the Second Schedule completed either in the Maltese language or in the English language, and endorsed by the competent authority of the country where that taxable person is registered for VAT or where he exercises his economic activity; (
2. b)the original valid invoices and, or valid importation documents.

(3)Refund may not be granted: (

1. a)with respect to refunds to taxable persons not established in the territory of the Community, under conditions which are more favourable than those applied to Community taxable persons; (
2. b)on supplies made by that taxable person where his business would, by its nature, be treated as exempt without credit if such business had been carried on in Malta. 5.

(1)Decisions concerning applications for refund shall be given within six months from the date when the applications, accompanied by all the necessary documents required under these regulations for the examination of the application, are received by the Commissioner. Refunds shall be made before the end of this period, at the applicant’s request, either in Malta or in the country where he is established. In the latter case, the bank charges for the transfer shall be payable by the applicant. Decisions. Amended by: L.N. 94 of 2012.

(2)The Commissioner shall state the ground for refusal of an application. Appeals against such refusal may be made to the Administrative Review Tribunal in Malta, subject to the same conditions as to form and time limits as those governing claims for refund made by taxable persons established in Malta.

1. Where a refund has been obtained in a fraudulent or in any other irregular manner, the Commissioner shall proceed directly to recover the amounts wrongly paid and any penalties and interest imposed by regulation 7, without prejudice to the provisions relating to mutual assistance in the recovery of value added tax. In the case of fraudulent applications which cannot be made the subject of an administrative penalty, the Commissioner shall refuse for a maximum period of two years from the date on which the fraudulent application was made any further refund to the taxable person concerned. Where an administrative penalty had been imposed and interest has become due, but has not been paid, the Commissioner shall suspend any further refund to the taxable person concerned until it has been paid. Furthermore the Commissioner shall have the right to deduct such administrative penalty and interest from any future refunds claimed by that taxable person. Fraudulent application. 3 4 [ S.L.406.11 Administrative penalty and interest. REFUND OF VALUE ADDED TAX TO TAXABLE PERSONS NOT ESTABLISHED IN THE TERRITORY OF THE COMMUNITY
2. Where a refund has been obtained in a fraudulent or any o t h e r i r r e g u l a r m a n n e r, a s o u t l i n e d i n r e g u l a t i o n 6 , a n administrative penalty equivalent to twenty per cent of the amount unduly received shall become due, together with interest at the rate of one per cent per month or part thereof, which interest shall start to run from the date of payment of the amount unduly received to the date when such amount together with the administrative penalty and interest is paid back to the Commissioner: Provided that the amount of such administrative penalty and interest taken together shall not exceed the amount obtained in a fraudulent or any other irregular manner. Method of payment.
3. The payment of the refund shall be made in euro or in national currency, according to the choice of the taxable person, by bank draft posted to the address shown on the application. Eligibility. 9.

(1)For the purposes of these regulations, eligibility for refunds shall be determined in accordance with the provisions of articles 22 and 23 of the Act.

(2)These regulations shall not apply to supplies of goods, which are or may be exempted under item 1

(2)of Part One of the Fifth Schedule to the Act. REFUND OF VALUE ADDED TAX TO TAXABLE PERSONS NOT ESTABLISHED IN THE TERRITORY OF THE COMMUNITY FIRST SCHEDULE (Regulation 4) [ S.L.406.11 5 6 [ S.L.406.11 REFUND OF VALUE ADDED TAX TO TAXABLE PERSONS NOT ESTABLISHED IN THE TERRITORY OF THE COMMUNITY REFUND OF VALUE ADDED TAX TO TAXABLE PERSONS NOT ESTABLISHED IN THE TERRITORY OF THE COMMUNITY SECOND SCHEDULE (Regulation 4) [ S.L.406.11 7